|Date Closed:||February 28, 2017|
|Client Name:||Performance Sports Group|
The sale was completed in connection with PSG’s cross-border restructuring proceedings which commenced on October 31, 2016, with joint proceedings in the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act and the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 of Title 11 of the U.S. Code.
The Sagard/Fairfax-led investor group made the “stalking horse” bid at the outset of the sales and auction process, which was ultimately determined to be the successful bid. To provide working capital for PSG’s operations and to fund the auction and sales process during the restructuring process, PSG’s existing asset-based lenders and Fairfax and Sagard provided PSG with an aggregate of US$386 million in debtor-in-possession (DIP) financing. Both Canadian and US courts approved the sale and associated reorganization transactions pursuant to orders dated February 6, 2017, and supplemented on February 10, 2017. Upon completion of the sale, PSG ceased to exist as an operating business and is in the process of allocating and distributing the sale proceeds to the debtors’ stakeholders in the US and Canadian bankruptcy proceedings.